Project Details
Project
AC Energy Green Bond Framework Second-Party Opinion (2021)
Client
AC Energy
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Philippines
Evaluation Date
Aug 2021
Evaluation Summary
Sustainalytics is of the opinion that the AC Energy Green Bond Framework is credible and impactful and aligns to the four core components of the Green Bond Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds, Renewable Energy, is aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible category will promote renewable energy in the APAC region and advance the UN Sustainable Development Goals, specifically SDG 7.
PROJECT EVALUATION / SELECTION
AC Energy’s internal process in evaluating and selecting projects is executed by the joint collaboration of representatives from AC Energy’s Business Development, Finance and Sustainability Teams. AC Energy’s Board of Directors and Senior Management is responsible for the validation and approval of the shortlisted projects. The Company has in place the AC Energy Group’s Environmental and Social Policy which is applicable to all allocation decisions made under the Framework. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Proceeds of the green bond will be registered separately and tracked internally through AC Energy’s information systems. Pending full allocation, the unallocated green bond proceeds will be invested in cash or cash equivalents, used to repay existing credit obligations of the AC Energy Group or transferred to other entities within the AC Energy Group according to AC Energy’s own internal liquidity management policies. This is in line with market practice.
REPORTING
AC Energy intends to report on allocation and impact of proceeds on its website on an annual basis until full allocation. The reports will include a list of approved projects, amount of allocated and unallocated proceeds and case studies or examples when feasible. AC Energy also is committed to reporting on relevant impact metrics. In addition, the Company intends to engage external auditors to provide verification on AC Energy’s reporting and management of proceeds, which Sustainalytics considers to be best market practice.